• Coinbase received a Wells notice from the SEC over a month ago.
• The company has been meeting with the SEC for nine years in order to stay compliant.
• Kraken was recently targeted by the SEC, resulting in $30 million in penalty fees and ceasing all staking activities and services.
Coinbase Receives Wells Notice From SEC
Coinbase has received a Wells Notice from the Securities and Exchange Commission (SEC) over a month ago. This could be an indication that charges are likely coming soon, so Coinbase is consulting with legal teams to prepare itself.
Coinbase Vs. The SEC: Who Will Win?
The SEC doesn’t seem to care about which crypto companies are following rules or not – they just want to get rid of digital currency in America once and for all. Coinbase issued a statement saying that if they are charged with something, they will fight back against the agency and „fail on the merits.“ Paul Grewal, Coinbase’s Legal Compliance Officer commented that when they went public, they had detailed discussions with the SEC about their business which is now part of the Wells notice two years later – nothing has changed!
Kraken Targeted By The SEC
Kraken – another popular trading platform based in Northern California – was also recently targeted by the SEC. As a result, Kraken lost more than $30 million in penalty fees and had to cease all staking activities and services.
Coinbase Claims Innocence
Coinbase claims total innocence of any wrongdoing, stating that it does not list, clear or effect trading in securities. They believe that if they were charged with something it would fail on merit as nothing has changed since their public filing two years prior when these same issues were discussed by both parties at length.
It remains to be seen who will win this battle between Coinbase and the Securities & Exchange Commission (SEC). Ultimately though, it appears that whichever side comes out on top; crypto companies may still face repercussions for operating within America’s borders regardless of whether or not regulations have been adhered to strictly or not – something that investors should keep in mind before investing into digital currencies either directly or indirectly through exchanges like Coinbase.